China's Trade Secret Protection Provisions Take Effect on 1 June 2026

The Provisions on the Protection of Trade Secrets《商业秘密保护规定》have taken effect in China on 1 June 2026. The 31-articles Provisions, issued by the State Administration for Market Regulation (SAMR), fill the gap in detailed rules for the administrative protection of trade secrets and replace the Provisions on Prohibiting Infringement of Trade Secrets promulgated in 1995.

The Provisions bring about significant updates in line with the deepening development of the digital economy, most notably by explicit extension of the administrative trade secret protection to digital assets including data, algorithms, computer programs, and codes, alongside more traditional categories such as formulas, manufacturing processes, materials and technical methods.

Notably, in defining "commercial value" as a constituent of trade secrets, the Provisions specifically state that interim achievements and failed experimental data or abandoned technical solutions generated in the course of production or business activities also qualify for protection, provided that they possess actual or potential commercial value such as bringing revenue growth, shortening R&D timelines or lowering costs for the rightsholder.

Other noteworthy new regulations in the Provisions include clear recognition of digital infringement, establishing strict liability for third parties instigating, inducing or assisting in trade secret infringement, and incorporating unauthorised electronic access, bulk downloading of internal data, and transferring information to devices or cloud storage not under the rightsholder's control into "improper means" of acquiring trade secrets.

The Provisions also feature expanded enforcement mechanisms and empowering market regulatory authorities with the adoption of compulsory measures in investigating alleged infringements, substantial increase of administrative penalties for trade secret infringement, and refining the burden-shifting mechanism to the benefit of rightsholders.